Extension Granted For Hotel Conversion

May 13, 1996|By Hal Dardick.

Aurora — Mayor David Pierce has extended until July 1 an agreement with developers seeking to convert the Aurora Hotel into a low-income senior housing complex.

Although Harold D. Rider, head of North Island Apartments Ltd. Partnership, failed in March to win $2 million in federal tax credits necessary for the project, he is confident the project will win the credits next month, when the Illinois Housing Development Authority is expected to make a decision on the matter.

The council also committed the city to granting Rider $1 million to complete the $6 million project, should he receive the tax credits.

If Rider does not receive the tax credits, the 78-year-old hotel probably would be demolished to make way for a city plaza, Pierce said.

Meanwhile, the city is working on a long-term, detailed development agreement with Rider in case he receives the tax credits, said Scott McCleary, Pierce's executive assistant.